Expert Consultation Meeting 2

EXPERT CONSULTATION MEETING
Held on : 24/04/2008

Expert Consultation Meeting on Technology Development, Acquisition and Transfer for the Targeted SMEs

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  2.1 2
  2.2 4
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    (A) Plastic and Other Synthetics subsector 5
    (B) Light Engineering and Metal Working subsector 6
    (C) Agro processing/Agro business/Plantation agriculture/Specialist farming/Tissue culture and related business subsector. 9
    (D) Leather Making and Leather Goods subsector 10
    (E) Electronics and Electrical subsector 12
    (F) Fashion Design and Dress Making subsector 14
  2.3 15
   
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23
 
    29
    46
    64
    75
    86
    98


1. Background

The development, acquisition and transfer of advanced and modern technologies are vital to the sustainable development of Small and Medium Enterprises (SMEs). Advanced or modern technologies have an important role in enhancing the economic growth in general and particularly in alleviating the poverty.. Technology is a powerful tool to narrow the gap between the countries who are benefiting from globalization and those for which globalization has led to finely tuned marginalization. It is also recognized that international trade is greatly affected by the relative capacity of countries and organizations to master technologies and capture innovations. Unfortunately developing countries like >Bangladesh> face major challenges in properly developing, adapting and applying advanced or modern technologies. In this context, SME Foundation organized an expert consultation meeting on technology development, acquisition and transfer for targeted SMEs.


2. Objective of the expert consultation meeting

The consultation meeting was organized by targeting the six SME subsectors. The subsectors are as follows:

  • Plastics and other synthetics
  • Light engineering and metal working
  • Agro processing/Agro business/Plantation agriculture/Specialist farming/Tissue culture and related business
  • Leather making and leather goods
  • Electronics and electrical
  • Fashion design and dress making
The expert consultation meeting was held on April 24, 2008 at Bangladesh Institute of Administration and Management (BIAM) Foundation, 63, New Eskaton, Dhaka-1000.

The objectives of the consultation meeting are:
  • Asses the available technologies, related organizations/institutions and technology needs for SME promotion
  • Determine the major areas of interventions for technology acquisition and transfer for SMEs
  • Find out the constraints and potentials in technology acquisition, adaptation, upgradation and transfer for SME promotion;
  • Prepare a national strategy for technology transfer for the promotion of SMEs and
  • Develop a time bound action plan.
2.1 Inaugural session

The meeting started with the inaugural session at 10.00 am April 24, 2008 following a recitation from Holy Quran. The following personalities were on the dais to grace the occasion.

  • Professor Dr. M. Anwarul Azim, Vice Chancellor, Dhaka University of Engineering Technology as the Chief Guest.
  • Engr. Md. Abdur Rouf, Vice President, The Institution of Engineers Bangladesh (IEB) as the Special Guest.
  • Engr. Golam Md. Alamgir, Chairman, MAX Group as the Special Guest.
  • Professor Dr. M Kamal Uddin, Director, Board of Directors, SME Foundation as the Chairperson.
  • Mr. Mohammad Altaf Husain, Deputy Secretary, SME Foundation.
Mr. Mohammad Altaf Husain, Deputy Secretary, SME Foundation made the welcome speech by addressing the key note speakers, expert consultants, media persons, guests and all other participants who were e present in the expert consultation meeting on technology development, acquisition and transfer for targeted SMEs. He added that perhaps it is the first consultation meeting for the improvement of the technology for promotion of SMEs in the country. Technology development, acquisition and transfer & adaptation of advanced technologies are very important for flourishing the SMEs. It is very vital to enhance the economy in general and the reduction of poverty in particular. It will help us to achieve Millennium Development Goals (MDGs). At last, he thanked to Chief Guest, Special Guests and Chairperson for providing their valuable time for inaugural session of the expert consultation meeting. Mr. Engr. Golam Md. Alamgir, Chairman, MAX Group, in his address as a Special Guest of the occasion told that SME is a buzz word. By using this buzz word, lots of organizations are taking the opportunities but lacking behind the real work. He added that countries like, China> and Malaysia enhance their economies by nursing their SMEs. Appropriate technology is vital for sustainability of SMEs due to free market economy. Access to finance to achieve technology is the major challenge which is faced by SMEs. He suggested that creating or managing venture capital will be helpful for easy access to finance. With the technology, policy reform also plays an important role in flourishing SMEs. He further added that the taxation gap between the finished goods and raw materials shall have to be narrow to promote manufacturing rather than trading. He concluded his speech by wishing good success for the expert consultation meeting Engr. Md. Abdur Rouf,Vice President, The Institution of Engineers Bangladesh(IEB) in his address as Special Guest said that booming of SMEs is pivotal tool to reduce poverty. Without using the appropriate, modern and advanced technologies thriving of SMEs is impossible. He delighted that Government created SME Foundation at a right time to take initiation for the nursing of SMEs. He welcomed the expert consultation meeting on technology development, acquisition and transfer for targeted SMEs. He added that as per the objectives, the outcome of the today’s consultation meeting will be a time bound action plan that shall be implemented for the real success of this consultation meeting. Professor Dr. M. Anwarul Azim, Vice Chancellor, Dhaka University of Engineering & Technology> in his address as the Chief Guest of the occasion termed that main challenges and barrier of development is the lack of technology acquisition in the developing countries. Access to market is becoming narrow due to globalization. In order to compete with the world market adaptation of advanced technologies and upgradation of existing technologies is essential with the skilled manpower for handling the technologies. He added that we have to think for the sustainable development and it will be a good start. Experts from the identified six sectors will discuss the issues in their own areas for technology development, acquisition and transfer. They will spend the entire day to come out fruitful recommendations. He urged the Government and SME Foundation to implement the recommendations for the well being of all the subsectors. He emphasized on the innovation of technology as per the demand in our local manufacturers and BUET can play a pioneer role in this case. He told that Government shall provide sufficient fund for innovative research. He urged all to be proactive rather than reactive for the sustainability. He concluded the address by wishing good success for the expert consultation meeting. Professor Dr. M Kamal Uddin, Director, Board of Directors, SME Foundation in his address as the Chairperson of the inaugural session said that wealth creation is possible only by the utilization of appropriate technology. He continued that it is important for socio economic growth, business development and finally for economic development. For overcoming low economic growth with low diversity, commercial utilization of developed technology is required, he added. SMEs development is the key to economic growth that can be achieved by using appropriate technology. We need to select, develop or adapt the appropriate technology for the sustainable SMEs growth. SME technology has to be innovative, cost effective, environment friendly, easy operationable and sustainable. He mentioned that it is our challenge to choose this type of technology. He also told that it is a matter of regret that there is no technology transfer center in our country. In order to adapt the modern and advanced technology, it is essential to build up National Technology Transfer Center (NTTC). SME Foundation should provide the support to build technological capacity of the SMEs by facilitating the utilization of appropriate modern technologies with a view to attaining sustainable development. He continued that it is not possible to purchase the entire technology from aboard. For adaptation of foreign technology it is essential to established Research & Development (R&D) center in our country. R & D is must for technology development. Otherwise technology will not be fruitful and effective. SME Foundation will work to choose appropriate, modern and advanced technology for SME promotion. Support services for technology adaptation are vital for trouble free operation with round the clock. Support services should be improved with achievement of appropriate technology. SME Foundation will act as a pivotal center in this case. He emphasized to set up National Innovation System (NIS) in Bangladesh. SME Foundation will collect the entire information from the NIS> and disseminate & market it among the SMEs (The total presentation of Chairperson of the inaugural session has shown in annex-2) He added that it is required that NTTC & SMEF to collaborate regional & international Technology Transfer Centers (TTCs). Without integrating the modern and advanced technology with our system, sustainable development will be impossible. He ended speech by thanking the participants and wishing good success of the occasion. Quite a significant number of representatives from various government, autonomous and non government organizations participated in the inaugural session. After the inaugural session, it was followed by working group discussions of six identified sectors, which both were bridged by a short tea break.



2.2 Working Group Discussion

Working group discussion After the inaugural session the expert consultants were split into six working groups to discuss the issues and came out with an action plan pertaining to technology development, acquisition and transfer for the targeted SMEs. The sector specific list of expert consultants was shown in annex-2. The action plans that were came out from the discussions namely three categories:

  • Short term action plans- duration 1-3 years
  • Midterm action plans-duration 2-5 year and
  • Long term action plans-duration above 5 years.



2.2.1 Recommendations (Action plans) of the six working groups:



(A) Plastic and other synthetics group
Sl no SHORT TERM
Task Responsible Party Schedule Performance Monitoring Resource Key Characteristics / Operational Controls / Comments
1. In-depth survey of the entire plastic industries is desirable to:Identify types of technologies, constraints, potentials and needs for technical assistance and create a data base. SMEF On going Progress report every month SMEF/MOI already allocated Report
2. Upgrading of mold/die making. MME, BUET and BITAC. 2008-2011 (3 years) Subcommittee formed by SMEF Current stakeholders and information about advanced technology Assist existing mold makers to make improved molds. Mold technology to be transferred to the stakeholders.
3. Linking all existing institutions and facilities related to polymer and allied materials (data bank) SMEF Up to Dec. 2008 (6 months) Ch.E Department BUET SMEF Full database development.
4. Quality control services (testing facilities, identification and characterization of different polymers and products) PP & PPC, BCSIR, BITAC, MME and BAEC 2008-2011 (3 years) SMEF & MME, BUET BCSIR, BITAC, MME, BAEC ( in kind) and SMEF (additional facilities) Full list of testing facilities developed and made available to user.
5. Upgrading of existing processing technology specially for recycling factories with Environment Management System (EMS). Suitable NGOs/ Organization to be identified 2008-2011 (3 years) ChE department, BUET Funding will be required Implementation of EMS in at least 25% factories.
6. Development (Education and Training) of technical manpower. BITAC and SMEF To continue BPGMEA Participants and SMEF Output of skilled manpower
MIDTERM
7. Identification of new and diversified products. BCSIR and MME Dept.,BUET 2008-2013 (5 years) SMEF BCSIR, MME, BUET (in kind) and additional fund to be found. New products introduced into market.
8. Relocation and development of plastic recycling factories with all facilities. SMEF, BSCIC and BPGMEA. 2008-2013 (5 years) SMEF Stakeholders, SMEF and BSCIC. Most factories in Dhaka relocated.
9. Establishment of NTTC and link with APCTT for technology transfer in plastic subsector. SMEF/MOSICT 2008-2013 (5 years) SMEF    
10. Waste management options for thermosetting materials. Suitable NGOs/ Organization to be identified 2008-2012 (4 years) ChE department, BUET Funding will be required Thermosetting plastic successfully managed.
LONG TERM
11. Set up Bangladesh Institute of Plastic Engineering and Technology (BIPET) GoB 2008-2014 (6 years) SMEF Funding will be required Institute set up and functional
12. Technology transfer of advanced polymer technologies. MME and ChE department, BUET 2008-2014 (6 years) SMEF Funding required Introduction of new technologies in the market.
13. Formation of National Research and Testing Institute (NRTI) in general. BSTI/GoB 2008-2014 (6 years) SMEF Funding required NRTI set up and functional




(B) Light engineering and metal working group


Sl No Short term
Task Responsible Agency Schedule Performance Monitoring Resource Key Characteristics/ Operational Controls / Comments
1 More and extended Government supports to be rendered to make congenial business enabling environment for SMEs GoB (MOI/ MOC/ MOSICT) BSCIC To start immediately and continuous action is required SMEF, BPC, FBCCI, DCCI, BSCIC, BUET and other universities and other BMOs & trade bodie Universities/ Research Institutes/ Experts/Consultants Government support
2 Appropriate quality of products to be ensured commensurating with the market demand and quality assurance system to be developed in the industry MOI/ MOC/BSTI/ BUET other universities /research institutions/ BMOs trade bodies To start immediately and continuous action is required SMEF, BPC, BUET and other universities FBCCI, DCCI, and other BMOs trade bodies MOC/BSTI/ BUET other universities /research institutions/ BMOs & trade bodies Institutionalization
3 Technology transfer mechanism has to be developed locally and internationally MOSICT/ MOI/ MOC / BUET& universities / BITAC/ BMTF FBCCI, DCCI, and other BMOs & trade bodies To start immediately and continuous action is required SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies Ministries/ Universities/ Research Institutes/ Experts/Consultants Institutionalization
4 Human resource development- necessary steps to be taken to administer training, workshops, seminar, symposium on regular basis Universities/ SMEF, BPC, BUET, FBCCI, DCCI, and other BMOs & trade bodies To start immediately and continuous action is required SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies Universities/ SMEF, BPC, BUET, FBCCI, DCCI, and other BMOs & trade bodies Capacity development
5 Availability of raw materials with required quality and quantity MOC/ MOI SMEF, BPC, FBCCI, DCCI, BUET, and other BMOs & trade bodies To start immediately and continuous action is required MOC/ MOI, SMEF, BPC, BUET & other universities, FBCCI, DCCI, and other BMOs & trade bodies MOC/ MOI SMEF, BPC, FBCCI, DCCI, BUET, and other BMOs & trade bodies Institutionalization/ PPP
6 Access to finance for industrial growth, innovation, new and indigenous technology development and adaptation of foreign technology etc. to be facilitated with low cost of capital. BOI/ MOC/ MOI/ FBCCI, DCCI, and other BMOs & trade bodies To start immediately and continuous action is required SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies MOC/ MOI/ FBCCI, DCCI, and other BMOs & trade bodies Partnership for growth
7 Access to finance: Appropriate mechanism to be developed to create easy access to finance for SMEs MOF/ MOC/BOI/BB Banks/ FIs 2008-2010 (2 years) SMEF, BPC, BSCIC, FBCCI, DCCI, and other BMOs & trade bodies MOF/ MOC/BOI/BB Banks/ FIs Financial Institution with innovative policy
8 Cost of capital to be reduced to single digit for SMEs MOF/ Banks/BB/FIs 2008-2010 (2 years) MOC/ MOI, SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies Banks/BB/FIs /MOF/ Institutionalization
9 Awareness on standards and compliances (national and international) has to be developed BSTI, MOI/ MOC/BUET & other universities / FBCCI, DCCI, and other BMOs & trade bodies 2008-2010 (2 years) SMEF, BPC, BUET & and other universities FBCCI, DCCI, and other BMOs & trade bodies BSTI, MOI/ MOC/BUET & other universities / FBCCI, DCCI, and other BMOs & trade bodies Awareness development
10 Subcontracting system has to be developed and strengthened BOI/ MOC/ MOI/BSCIC 2008-2010 (2 years) SMEF, BPC, BUET & and other universities FBCCI, DCCI, and other BMOs & trade bodies BOI/ MOC/ MOI/BSCIC Macro and micro level policy
Midterm
11 Policy Support: Appropriate policy to be made to proliferate SMEs. Policies include industrial policy, export and import policy, tariff policy, raw materials procurement policy and various service rendering policy and incentives GoB (MOI/ MOC/ MOSICT) BSCIC 2008-2011 (3 years) SMEF, BPC, FBCCI, DCCI, BSCIC, BUET & and other universities, and other BMOs & trade bodies Universities/ Research Institutes/ Experts/Consultants Congenial pro SME Policy
12 Upgrading foundry casting and molding technology BUET & other universities / BITAC/ BMTF/ BMOs & trade bodies 2008-2011 (3 years) SMEF, BPC, BUET & and other universities FBCCI, DCCI, and other BMOs & trade bodies Universities/ Research Institutes/ Experts/Consultants Technological support
13 Testing facility development and certification of products BSTI/ BUET& other universities / BITAC/BMTF/ BMOs & trade bodies 2008-2011 (3 years) SMEF, BPC, BUET & and other universities FBCCI, DCCI, and other BMOs & trade bodies Universities/ Research Institutes/ Experts/Consultants PPP
14 Specialized facility to be developed on heat treatment, surface treatment and die making BUET& universities / BITAC/ BMTF/ BMOs & trade bodies 2008-2011 (3 years) SMEF, BPC, BUET & and other universities FBCCI, DCCI, and other BMOs & trade bodies BUET& universities / BITAC/ BMTF/ BMOs & trade bodies PPP
15 Inter linkages with the industry and resource organizations has to be developed MOI/ MOC/BUET and other Universities/ SMEF, BPC, BUET & other universities FBCCI, DCCI, and other BMOs & trade bodies /Ministries 2008-2011 (3 years) SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies MOI/ MOC/BUET and other Universities/ SMEF, BPC, BUET & other universities FBCCI, DCCI, and other BMOs & trade bodies /Ministries Networking
16 Industry university linkages has to be strengthened so that knowledge generated in the university can be implemented in the industry Universities/ MOI/ SMEF, BPC, BUET & and other universities FBCCI, DCCI, and other BMOs & trade bodies 2008-2011 (3 years) SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies Universities/ MOI/ SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies Linkages and bondage
17 Introduction of advanced technology management, development of design office, CAD & CAM etc. in the industrial sector MOC/ MOI / BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies 2008-2011 (3 years) SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies MOC/ MOI / BUET & and other universities FBCCI, DCCI, and other BMOs & trade bodies Technological upgradation
Long term
18 Infrastructure facility development: Industrial zone or clustering of industry in various parts of the country has to be developed MOI/ MOF/ BOI/ MOC/ BSCIC/ Development Partners 2008-2014 (5 years) and On going SMEF, BPC, BSCIC, FBCCI, DCCI, and other BMOs & trade bodies MOI/ MOF/ BOI/ MOC/ BSCIC/ Development Institutionalization/ PPP
19 R&D and indigenous technology development-Proper facility to be provided to universities and research organizations to developed LEIs technologies including dissemination and transfer to industry MOSICT/ MOI/ MOC/BUET & other universities /research institutions 2008-2014 (5 years) and on going SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies Universities/ Research Institutes/ Experts/Consultants University-Industry Linkages
20 Development of National Innovation System (NIS) for innovation promotion of Light Engineering products, developing incubation centers for technology development, adaptation, acquisition and transfer MOI/ MOC/ BUET & other universities, MOF/ FBCCI, DCCI, and other BMOs & trade bodies 2008-2014 (5 years) SMEF, BPC, BUET and other universities, FBCCI, DCCI, and other BMOs & trade bodies BUET & other universities, MOF/ FBCCI, DCCI, and other BMOs & trade bodies Infrastructure development
               


(C) Agro processing/Agro business/ Plantation agriculture/Specialist farming/Tissue culture and related business group.

Sl No Short Term
Task Responsible Party Schedule Performance Monitoring Resource Key Characteristics

1

Identify 10 prospective SMEs

SMEF

6-month

SMEF

SMEF

Identified SMEs for intervention

2

Conduct need assessment (technology, machinery, process ) Survey

SMEF

6-month

SMEF

SMEF

Survey conducted report available

3

Plan and design intervention

SMEF

3-month

SMEF

SMEF

Intervention plan developed

4

Organize a panel of consultants to review the industries

SMEF

3-month

SMEF

SMEF

Consultant hired

5

Organize awareness programs/training available technologies

SMEF/BSCIC/BIBM, private org. etc.

36-month

SMEF

SMEF

Campaign/training made

6

Assist SMEs for financial support

SMEF & Banks

36-month

SMEF

SMEF

Assistance provided through Banks

Mid Term

7

Assess the current technological capabilities

SMEF

24-month

SMEF

SMEF

Assessment made

8

Provide assistance to Packaging SMEs

SMEF

60-month

SMEF/td>

SMEF

Assistant provided

9

Develop linkage among SMEs and R&D Institute.

SMEF

48-month

SMEF

SMEF

Linkage developed

10

Make inventory of available technology

SMEF

48-month

SMEF

SMEF

Consultant hired and inventory made

11

Conduct a “Techno-Economic Survey

SMEF

30-month

SMEF

SMEF

Consultant hired and survey conducted

12

Develop a ‘Compendium on Processing Technologies

SMEF

60-month

SMEF

SMEF

Consultant hired and compendium made

Long Term

13

Initiate and support specialized R&D programs

SMEF

84-month

SMEF

SMEF

Linkage made and R&D Program developed

14

Support machinery development

SMEF

84-month

SMEF

SMEF

Machinery/equipment SMEs established



(D) Leather making and leather goods group.


Short-term
Sl. No. Actions Responsible party Schedule Performance Monitoring Resources Key Characteristics/ Operational controls/ Comments
1.0 Policy support for leather, footwear and leather- products industry MOI, MOC, NBR, EPB Dec. 2008 MOC, SMEF EPB/LSBPC For the production of more value added export manufacturing.
2.0 Relocation of leather manufacturing industries BSCIC, MOI Dec. 2009 IMED, MOI, MOP GOB/ DP Immediate transfer of leather manufacturing industry in Savar
3.0 Establishment of CETP BSCIC, MOI Dec. 2009 IMED, MOI, MOP GOB/ DP Simultaneous set up of CETP with up-dated technology.
4.0 Developments of data bank on the present position of production technology need to be updated by field survey. SMEF, BLSC, LSBPC, BCLT Dec. 2008 SMEF GOB/ DP To assess the installed production capacity and present position of production technology.
5.0 Improvement of Production and Processing Technology with the support of concern authority. MOF, MOC, MOI, Financial Institutes 2008-2010 MOI, MOF, MOC, EPB GOB/ DP Need to procure new production technology and trained processing personnel.
6.0 Human Resource Development MOE, BCLT BSCIC, LSBPC, BLSC, SMEF 2008-2010 BCLT, LSBPC, BLSC GOB/ DP Organize need based skill development program including CAD/CAM, product development etc. and improvement of faculty strength of BCLT.
7.0 Smooth financing for the improvement of existing leather, footwear and leather-products industry. MOF 2008-2010 MOF MOF/ Development Partner Technological up-gradation
8.0 Adopt and practice of cleaner technology. MOI, DOE, BLSC, LSBPC, BCLT and concerned association, stakeholders 2008-2010 DOE GOB/ DP To ensure the environmental friendly technology.
9.0 Create awareness on eco-labeling and compliances. MOI, MOC, DOE, BCLT, BLSC 2008-2009 DOE, BLSC, LSBPC, SMEF LSBPC, BLSC To follow the proper guideline about regulatory and mandatory quality control.
10.0 Reduction of water consumption WASA, Stakeholders 2008-2010 WASA - Effective use of water to reduce effluent load.
11.0 Improvement of processing technology Stakeholders, MOI, MOC 2008-2010 MOI, BLSC, LSBPC DP Improvement of processing and manufacturing capability.
12.0 Checking the imported chemicals and accessories NBR, MOC, BCLT, BSTI, LRI 2008-2010 Customs authority, BCLT, BSTI, LRI GOB To control the illegal entrance of prohibited chemicals and accessories.
13.0 Tax free importation of machinery, components, raw materials, chemicals and accessories. NBR, MOF 2009-2010 NBR, MOC   To encourage the export manufacturing of leather, footwear and leather-products.
14.0 Establishment of accredited testing laboratory for leather, footwear and leather-products industry. MOE, MOC, BLSC, BCLT 2008-2009 BCLT, BLSC ITC, BLSC, BCLT To create the necessary testing facility for the industry
15.0 Create a Information Centre for leather, footwear and leather-products sector. MOE, MOC, EPB 2008-2010 BCLT, BLSC, LSBPC GOB/DP To cater the necessary information for the entrepreneurs.
16.0 Bonded warehouse system should be dropped from the SMEs of leather, footwear and leather-products sector. NBR 2008-2009 NBR, MOC   To facilitate better application of production and processing technology.
17.0 Skill development of production and maintenance personnel for leather, footwear and leather-products industry. MOI, MOC, LSBPC, BLSC, BCLT, BUET, SMEF 2009-2010 LSBPC, BLSC, BCLT GOB/ DP Skill improvement for workforce and maintenance personnel.
Medium-term
18.0 Health and safety practice in leather, footwear and leather-products industry. MOI, LSBPC, Concerned associations. 2008-2012 MOI, Concerned associations   To improve the work environment.
19.0 Introduction of proper production technology for the conversion of by-products as salable commodity. Stakeholder, MOI, MOC, LSBPC, SEMF 2008-2012 SMEF, LSBPC MOF, FI, SMEF For better utilization of by-products
20.0 Soft credit facilities for small and medium scale manufacturers. MOF, SMEF, NGOs, FI 2009-2010 SMEF GOB, DP To promote the SMEs in the field of leather, footwear and leather products.
Long-term
21.0 Market access for Leather, Footwear and Leather products manufacturers. MOC, LSBPC, EPB, BLSC 2008-2015 MOC, LSBPC MOC/DP Promote business activities and export earnings.
22.0 Introduction of quality assurance and quality management system for Leather, Footwear and Leather products manufacturers. MOC, MOI, SMEF, LSBPC, BCLT, BSTI, Concerned associations. 2008-2015 MOC, LSBPC, BLSC, BCLT. MOC/DP To improve the product quality for international market.
23.0 Research and development activities for Leather, Footwear and Leather products sector. BCLT, LRI 2008-2015 MOE, MOSICT GOB/DP To improve the process and product quality for global market.
24.0 Training on Production Management for better application of install production technology. Stakeholder, SMEF, LSBPC, BLSC 2008-2015 SMEF GOB/ DP To improve the use of production technology for higher productivity.
25.0 Updating information on latest production technology SMEF, BLSC, LSBPC, BCLT, LRI 2009-2015 SMEF, BLSC, BCLT GOB/ Suppliers Transfer of information about updated production technology.




(E) Electronics & Electrical Subsector

Short term
No. Actions Responsible Party Schedule Performance Monitoring Resource Key Characteristics/ Operational controls/ comments
1 Removing obstacles posed by wrong fiscal policies (tax, VAT, import duty) NBR (Ministry of Finance) By July 2008 significantly, continuing with vigilance later National Budget and implementation None Without this no enterprise will have the environment for technology enhancement and upgradation
2 Support Procurement of machinery with advanced technology: (i)Loan with low interest, (ii) low duty import (i) SMEF – Banks, (ii)SMEF-NBR By July 2008 National Budget and implement-ation None Will provide service to other manufacturers
3 Provide fiscal incentives for R&D (Tax holiday) NBR (Ministry of Finance) Starting July 2008, with modifications later National budget and implement-ation Very little, insignifi-cant shortfall in Govt revenue Growth in this sector will pay back much more to the nation
4 Support to private testing facilities including public and private Universities (Interest free loan, reduced import duties) SMEF & concerned Ministry By end 2009 Implementation Bank loans Training Able to test and calibrate to provide certification of products
5 Take measures to eliminate under-invoicing and dumping SMEF, Respective Associations, NBR Continuous Implementation None Elimination of market distortion
6 Support for obtaining Trade mark and Patent SMEF, Incubation Centre Initiate by 2008 Implementation Govt & Private Will encourage and provide support to innovators
Medium term
7 Supporting setting up of incubation centres Senior experts with industrial experience Frame policies by 2009 Market forces will allow self monitoring Own, funds from SMEF, Bank loan Provide technology upgradation, training of personnel, customized technology solutions
8 Setting up of Industrial Park SMEF, Association and BSCIC By 2010 Implementation Govt Cluster, Comon advance technology centre
9 Provide collateral free loans to technology innovators turned entrepreneurs with good track record Microcredit organizations, Banks Frame policies by 2009 Monitor technological and financial status of supported industries Microcredit organizations, Banks Tech and financial status should show significant signs of growth
10 Arrange short courses, workshops, Televised workshops SMEF, NPO, BSTI, BCSIR, BITAC, Incubation centres Initiate by 2009 Successful holding of such courses Various Public demand will indicate success
11 Support for obtaining Trade mark and Patent SMEF, Incubation Centre Initiate by 2009      
12 Upgrade electrical & Electronics departments of a few selected polytechnic institutes with focus on entrepreneurship Govt, Private Frame policies by 2009 Quality of graduates Govt, Private Increase in number and quality of techno-preneurs
13 Technology study tour and participation in fairs abroad SMEF, Association Frame policies by 2009 Implementation Govt Exposure to advanced technolgy
Long term
14 Curriculum modification of Universities UGC and Universities Frame policies by 2010 Implementation of changes into curriculum UGC, Universities Should provide incentives to teachers and researchers too
15 Set up more polytechnic institutes, & improve standard Govt, Private Frame policies by 2010 Number of institutes Govt, Private Increase in number and quality of techno-preneurs
16 Modify curriculum of schools and colleges to include industrial technology and motivation Govt, Educational boards. Initiate by 2012 Successful implement-ation Govt Creation of motivation for entrepreneurship


(F) Fashion design and dress making group.


Short term
No. Task Responsible Party Schedule Performance Monitoring Resource Key Characteristics / Operational Controls / Comments
1 CAD/CAM Training SMEF 2008-2009 (2 years) Experts SME It should be enhance our garments and SME sector
2 Dyeing/Printing/Pattern etc training SMEF Dec 2008 (6 months) Experts SMEF Technical know how & practical training should be implemented.
3 Arrangement of fair SME/DFID Round the year EPB SMEF Source of earning foreign currency
4 Guidebook publication SMEF 2008-2009 (1 year) SMEF SMEF It will be helpful for those who want to work in SME sector.
Midterm
5 Handloom & Power loom development Textile board 2008-2011 (3 years) Experts GOB Local weavers will be encouraged.
6 SME sales center SMEF 2008-2011 (3 years) SME/EXPERTS SMEF Gate way for local market & overseas buyers.
Long Term
7 Extension of SMEF centers in district level SMEF 2008-2014 (5 years) SMEF/BSCIC SMEF Remote areas designers will get training facilities.
8 Short term & Long term Loan SMEF/PKSF/PDBF 2008-2014 (6 years) SMEF ECNEC It is the ultimate goal for betterment of SME Technology development.






Concluding Session

The concluding session of the expert consultation meeting was graced by the presence of Dr. Mohammad Ayub Miah, Managing Director; SME Foundation presided over the session. The session started with the presentation of the time bounded action plans by the six working groups. Six designated key note speakers of six sectors was presented the intervention
Professor Dr. Md. Fazlul Karim, Principal, Bangladesh College of Leather Technology and key note speaker of Leather making and leat1her goods subsector was presented the intervention areas of the subsector for the improvement as follows:

Short term intervention (duration 1-3 years)

  • Policy support from the Government for leather, footwear and leather products industries for the production of more value added and export manufacturing.
  • Relocation of leather manufacturing industries to the proposed location in Savar immediate.
  • Establishment of CETP (Central Effluent Treatment Plant) with updated technology.
  • Developments of data bank on the present position of production technology need to be updated by field survey to assess the installed production capacity and present position of production technology.
  • Improvement of Production and Processing Technology with the support of concern authority. It is need to procure new production technology and trained processing personnel.
  • Organize need based skill development program including CAD/CAM, product development etc. and improvement of faculty strength of BCLT for human resource development.
  • Smooth financing for the improvement of existing leather, footwear and leather-products industry for technological upgradation.
  • Adopt and practice of cleaner technology to ensure the environmental friendly technology.
  • Create awareness on eco-labeling and compliances to follow the proper guideline about regulatory and mandatory quality control.
  • Reduction of water consumption to effective use of water to reduce effluent load.
  • Improvement of processing technology and manufacturing capability.
  • Checking the imported chemicals and accessories to control the illegal entrance of prohibited chemicals and accessories.
  • Tax free importation of machinery, components, raw materials, chemicals and accessories to encourage the export manufacturing of leather, footwear and leather-products.
  • Establishment of accredited testing laboratory for leather, footwear and leather-products industry to create the necessary testing facility for the industry.
  • Create an Information Centre for leather, footwear and leather-products sector to cater the necessary information for the entrepreneurs.
  • Bonded warehouse system should be dropped from the SMEs of leather, footwear and leather-products sector to facilitate better application of production and processing technology.
  • Skill improvement for workforce and maintenance personnel for leather, footwear and leather-products industry.




Midterm intervention (duration 2-5 years)

  • Health and safety practice in leather, footwear and leather-products industry to improve the work environment.
  • Introduction of proper production technology for the conversion of by-products as salable commodity for better utilization of by-products.
  • Soft credit facilities for small and medium scale manufacturers to promote the SMEs in the field of leather, footwear and leather products.
Long term intervention (duration above 5 years)


  • Market access for Leather, Footwear and Leather products manufacturers to promote business activities and export earnings.
  • Introduction of quality assurance and quality management system for Leather, Footwear and Leather products manufacturers to improve the product quality for international market.
  • Research and development activities for Leather, Footwear and Leather products sector to improve the process and product quality for global market.
  • Training on Production Management for better application of install production technology to improve the use of production technology for higher productivity.
  • Updating information on latest production technology to transfer of information about updated production technology to the entrepreneurs.


Dr. M Serajul Islam, Former Associate Professor, Department of Chemical Engineering, Bangladesh University of Engineering and Technology (BUET) and key note speaker of Plastic and Other synthetics subsector was presented the intervention areas of the subsector as follows:

Short term intervention (duration 1-3 years)

  • In-depth survey of the entire plastic industries is desirable to identify types of technologies, constraints, potentials and needs for technical assistance and create a data base.
  • Upgrading of mold/die making to assist existing mold makers to make improved molds. Mold technology to be transferred to the stakeholders.
  • Linking all existing institutions and facilities related to polymer and allied materials (data bank).
  • Quality control services (testing facilities, identification and characterization of different polymers and products) to develop and make available to user.
  • Upgrading of existing processing technology specially for recycling factories with Environment Management System (EMS).
  • Development (Education and Training) of technical manpower.

Midterm intervention (duration 2-5 years)
  • Identification of new and diversified products.
  • Relocation and development of plastic recycling factories with all facilities.
  • Establishment of NTTC and link with APCTT for technology transfer in plastic subsector.
  • Waste management options for thermosetting materials.

Long term intervention (duration above 5 years)
  • Set up Bangladesh Institute of Plastic Engineering and Technology (BIPET).
  • Technology transfer of advanced polymer technologies to introduction of new technologies in the market.
  • Formation of National Research and Testing Institute (NRTI) in general.

M Kamal Uddin, Professor and Director, Institute of Advanced Technology, Bangladesh University of Engineering and Technology (BUET) and key note speaker of Light engineering and Metal working subsector was presented the intervention areas of the subsector as follows:



Short term intervention (duration 1-3 years)

  • More and extended Government supports to be rendered to make congenial business enabling environment for SMEs.
  • Appropriate quality of products to be ensured commensurate with the market demand and quality assurance system to be developed in the industry.
  • Technology transfer mechanism has to be developed.
  • Human resource development- necessary steps to be taken to administer training, workshops, seminar and symposium on regular basis.
  • Availability of raw materials with required quality and quantity.
  • Business partnership has to be encouraged and nurtured.
  • Access to finance: Appropriate mechanism to be developed to create easy access to finance for SMEs.
  • Cost of capital to be reduced to single digit for SMEs.
  • Awareness on standards and compliances (national and international) has to be developed.
  • Subcontracting system has to be developed and strengthened.

Midterm intervention (duration 2-5 years)
  • Policy Support: Appropriate policy to be made to proliferate SMEs. Policies include industrial policy, export and import policy, tariff policy, raw materials procurement policy and various service rendering policy and incentives.
  • Upgrading foundry casting and molding technology.
  • Testing facility development and certification of products.
  • Specialized facility to be developed on heat treatment, surface treatment and die making.
  • Inter linkages with the industry and resource organizations have to be developed.
  • Industry university linkages have to be strengthened so that knowledge generated in the university can be implemented in the industry.
  • Introduction of advanced technology management, design, CAM etc the industrial sector.
Long term intervention (duration above 5 years)
  • Infrastructure facility development: Industrial zone or clustering of industry in various parts of the country has to be developed.
  • R&D and indigenous technology development-Proper facility to be provided to universities and research organizations to develop technologies and dissemination including transfer to industry.
  • Developing incubation centers for technology development, adaptation and transfer.

Dr. Saleh Ahmed, Consultant, SMESDP, Ministry of Industries and key note speaker of Agro processing / Agro business / Plantation agriculture / Tissue agriculture /Specialist culture and related business subsector was presented the intervention areas of the subsector as follows:

Short term intervention (duration 1-3 years)

  • Identify 10 prospective SMEs in this subsector.
  • Conduct need assessment (technology, machinery, process) Survey.
  • Plan and design intervention for this sector.
  • Organize a panel of consultants to review the industries.
  • Organize awareness programs/training available technologies.
  • Assist SMEs for financial support for technology adaptation.
Midterm intervention (duration 2-5 years)
  • Assess the current technological capabilities.
  • Provide assistance to Packaging SMEs
  • Develop linkage among SMEs and R&D Institute
  • Make inventory of available technology
  • Conduct a “Techno-Economic Survey
  • Develop a ‘Compendium on Processing Technologies
Long term intervention (duration above 5 years)
  • Initiate and support specialized R&D programs
  • Support machinery development

Professor Dr. K.S. Rabbani, Department of physics, Dhaka University and key note speaker of Electrical and Electronics subsector was presented the intervention areas of the subsector as follows:

Short term intervention (duration 1-3 years)

  • Removing obstacles posed by wrong fiscal policies (tax, VAT, import duty).
  • Support Procurement of machinery with advanced technology: (i) Loan with low interest, (ii) low duty import.
  • Provide fiscal incentives for R&D (Tax holiday).
  • Support to private testing facilities including public and private Universities (Interest free loan, reduced import duties).
  • Take measures to eliminate under-invoicing and dumping.
  • Support for obtaining Trade mark and Patent.
Midterm intervention (duration 2-5 years)
  • Supporting setting up of incubation centers.
  • Setting up of Industrial Park.
  • Provide collateral free loans to technology innovators turned entrepreneurs with good track record.
  • Arrange short courses, workshops, televised workshops.
  • Support for obtaining Trade mark and Patent.
  • Upgrade electrical & Electronics departments of a few selected polytechnic institutes with focus on entrepreneurship.
  • Technology study tour and participation in fairs abroad.
Long term intervention (duration above 5 years)
  • Curriculum modification of Universities.
  • Set up more polytechnic institutes, & improve standard.
  • Modify curriculum of schools and colleges to include industrial technology and motivation.

Ms. Tanjena Mahboob, Coordinator, Shanto Mariom Design & Technology Center and key note speaker of Fashion Design and Dress making subsector was presented the intervention areas of the subsector as follows:

Short term intervention (duration 1-3 years)

  • CAD/CAM Training for the Designers
  • Dyeing/Printing/Pattern etc training for the Designers.
  • Arrangement of fair for round year.
  • Guidebook publication for the Designers.
Midterm intervention (duration 2-5 years)
  • Handloom & Power loom development
  • Establishment of SME sales center
Long term intervention (duration above 5 years)
  • Extension of SMEF centers in district level
  • Short term Long term Loan for adaptation/upgradation of technology.
Dr. Mohammad Ayub Miah, Managing Director; SME Foundation in his address as a Chairperson in the concluding session referred that Technology development is one of the important wing of SME Foundation. He appreciated the action plans that came out from the daylong discussions. He thanked to all for spending their valuable time for developing these action plans. He expressed his gratitude & happiness since all action plans mentioned the implementation agencies/institutions/organizations. He added that SME Foundation will implement these action plans with the association of respective agencies/institutions/organizations mentioned in these action plans. It will also play an advocacy role towards the concerned organizations for the implementation of their part for the SME promotion, he further added. He continued that we are lagging behind in the case of technology development as well as coordinating with the appropriate people or organizations in a common platform. Today’s consultation meeting will make a bridge among all for the common interest and will also reduce the coordination gap. SME Foundation will contact with the entire experts as per the requirement during the implementation phase of the action plans. The entire key note with the action plans will be published by SME Foundation and will send to all concerned organizations so that they can use it as a benchmark for further development. He introduced the unique characteristics of SME Foundation. He added that it is created by Government, funded by Government but acting independently. Chairman and four directors of the board of directors of SME Foundation will be appointed by Government and rests of the directors of the board members are appointed from other organizations. The board of directors of SME Foundation is acting independently. It is a unique example of public private partnership in South Asian region, he said. He cited that other countries like Malaysia, China are ahead in SME development but not able to create an organization like SME Foundation which is acting without the influence from Government. He pointed out that access to finance is very crucial for technology development, which is the common action plan came out from the consultation meeting. SME Foundation will work for access to finance through credit wholesaling. Government has an intention to transfer the Small Enterprise Fund (SEF) of Bangladesh Bank to SME Foundation, he added. He believes that SME Foundation will provide the finance for SME development with a single digit interest rate. By citing the different fruitful activities of SME Foundation, He urged to all to visit the office of SME Foundation and enhance their activities by valuable suggestions in verbal or written form. SME Foundation will try to implement any form of activities like training workshop etc. He added that it is our moral duties to work for the development of our country because country has provided us knowledge through education. We should utilize that knowledge for the wellbeing of our country. Dr. Miah further added that we are lagging behind technology development. We have to start innovation, adaptation and transfer of technology in order to compete the world market with the products that are manufactured by our SMEs. He emphasized that without the upgradation of our existing technologies or adaptation of the modern and advanced technologies, we will lose the domestic market due to the effect of globalization. He concluded his speech with the vote of thanks to all.

The daylong “Expert Consultation Meeting on Technology Development, Acquisition and Transfer for the Targeted SMEs” came to a successful conclusion after the addresses of the Chairperson of the concluding session.

ANNEXES
Annex-1 : Speech from the chairperson of the inaugural session
Annex-2 : Sector specific list of expert consultants
Annex-3 : Keynote papers of six sectors

SME Foundation